Shared Ownership: The Broken Promise of Home Ownership

Shared ownership schemes were once hailed as a solution to the housing crisis, offering a pathway to home ownership for first-time buyers. However, the harsh reality is that this affordable housing solution has become wildly unaffordable for many.

The concept behind shared ownership is simple - buyers purchase a percentage of a property, typically between 25% and 75%, and pay rent on the remaining portion. This was meant to make home ownership more accessible, but in reality, the costs associated with shared ownership have skyrocketed, putting it out of reach for many.

According to a report by the housing charity Shelter, the average shared ownership property now costs an eye-watering £305,000, with buyers needing a deposit of around £30,500. This is a significant barrier for first-time buyers, who are already struggling to save for a deposit in the face of rising rents and the cost-of-living crisis.

Furthermore, the rent charged on the portion of the property that the buyer doesn't own can be exorbitant, often exceeding £500 per month. This, combined with the mortgage payments on the purchased share, can result in monthly housing costs that are comparable to or even higher than renting a similar-sized property outright.

The situation has become so dire that the National Housing Federation recently reported that shared ownership is no longer a viable option for most first-time buyers. The promise of getting a foot on the property ladder has turned into a nightmare, with many buyers finding themselves trapped in a system that is wildly unaffordable and offers little in the way of long-term security or equity growth.

As the housing crisis continues to deepen, it's clear that the shared ownership model needs a significant overhaul to make it truly accessible and sustainable for those struggling to get onto the property ladder. Without urgent action, the dream of home ownership may remain out of reach for an entire generation of aspiring homeowners.